AMP NZ Property Retail Limited, owned 89% by minority shareholders in Australia and 11% by minority shareholders in Aotearoa, has two approvals which are part of its intention to acquire “a portfolio of four properties. The properties comprise a partially completed bulk retail site, bare development sites and a commercial office building to be redeveloped.”
One approval covers 11.1 hectares comprising:
· 10.2 hectares at Te Kowhai Road, The Boulevard and Parkinson Place, Te Rapa, Hamilton, Waikato; and
· 1.0 hectares at 51 Lambie Drive, Manukau City, Auckland.
They are being acquired for $39,000,000 from Ian Calderwood and John Murdoch of Aotearoa. [Decision number 200410006.]
The second covers 4.3 hectares at 61 Lambie Drive, Manukau City, Auckland for $19,500,000 from Lady Ruby Investments Limited, owned 34% by Gary Paykel, 33% by Ian Calderwood and 33% by John Murdoch. [Decision number 200410007.]
The Applicant is the retail acquisition vehicle of the AMP NZ Property Fund, a diversified property fund investing in commercial office, industrial, retail and hotel development properties in New Zealand and is managed by AMP Henderson Global Investors (New Zealand) Limited.
Chequer Corporation Special Purpose Vehicle Company, owned 49.9397% by shareholders in Australia, 30.0603% in Aotearoa, and 20% by Paul Halford and Rod Sullivan, has approval to acquire 1.5 hectares of freehold situated at 75 Barnes Road, Redwood, Christchurch, Canterbury for $480,000 from Chequer Corporation Limited which is owned 50% each by Halford and Sullivan.
While the consent is for the land purchase, according to the OIC,
Chequer Corporation Limited is an Australasian based plastics manufacturing and recycling business and the largest privately owned flexible plastic packaging business in New Zealand. The current shareholders of Chequer wish to realise part of their investment. A special purpose vehicle company (the Applicant) has been formed by a memorandum of understanding between the vendors, management and ANZ Private Equity under which these parties will subscribe for shares and convertible notes in the Applicant. The Applicant will acquire the business operations and assets of Chequer Corporation Limited. The ongoing involvement of the vendors and management is likely to ensure the ownership change is smooth and without disruption to the business.
[Decision number 200410005.]
DEC International NZ Limited, owned 67% by DEC International Inc of the U.S.A. and 33% by B Thompson of Aotearoa, has approval to acquire up to 100% of ICPbio Limited for $375,000. ICPbio owns 0.89 hectares freehold and 1.2025 hectares of leasehold at 26 Waipareira Avenue, Henderson, Auckland.
DEC is buying out other shareholders in ICPbio Limited: 50% Rock Isle Finance Limited and 50% Rosemary Sharpin, both of Aotearoa.
In April 2003, DEC received consent to acquire up to 33.33% of the shares in ICPBio Limited. See our commentary for that month for further details. While it now has approval to acquire the whole of ICPBio, “the Applicant has now entered into an agreement to increase its shareholding initially to 50% in ICPBio Limited.”
The Applicant carries on business in the agricultural sector as a biotechnology sciences business in the animal health industry. The Applicant is proposing to acquire additional shares in ICPbio Limited which is a biotechnology sciences business with globally recognised strengths in providing innovative, technical and commercial solutions to the animal health and pharmaceutical industries. ICPbio Limited has reached a position whereby it requires further capital to expand, and has come to an investment arrangement with the Applicant that can add value and assist in the growth of the business.
[Decision number 200410003.]
· Juken Nissho Limited, owned 85% by Juken Sangyo Company Limited and 15% by Nissho Iwai Corporation, both of Japan, has approval to acquire two farms in Gisborne for conversion to forestry:
· 648 hectares at Cricklewood Road, Wairoa, Gisborne for $1,181,250 from Norman McKinnon of Aotearoa. “The Applicant proposes to convert the subject property, which is currently utilised as a sheep and beef farm into a commercial forestry operation. This will ultimately provide the Applicant with a further secure supply of wood which will be processed at its existing Gisborne processing mill. This will ensure continuity of processing and employment at the Gisborne mill and will enable future expansion of the value-added production at Gisborne.” [Decision number 200410004.]
· 927 hectares at Monck Road, Gisborne for $2,981,250 from Price Family Trust of Aotearoa. “The Applicant proposes to convert the subject property, which is currently utilised for agricultural purposes, into a commercial forestry operation.” [Decision number 200410008.]
· Blakely Pacific Limited (as Trustee of the South Blakely Trust), owned by the Eddy Family of the U.S.A., has approval to acquire 66 hectares at Maxwell Road, Geraldine, Canterbury for $56,250 (a price that was initially suppressed but released on appeal in May 2004) from Dean Andrew Reddecliffe and Nicola Christine Reddecliffe of Aotearoa. “The Applicant, who is an experienced forestry manager/investor, proposes to acquire the subject property that is partially planted in radiata pine forestry. The proposed acquisition is consistent with the Applicant’s investment strategy involving forestry in New Zealand. The Applicant proposes to introduce an intensive silvicultural regime to produce high value clear wood and sawlogs from the property.” Blakely Pacific is a major forest owner in Aotearoa. The last approval given to it by the OIC was in April 2003 (see our commentary for that month for further details). [Decision number 200410002.]
Waihi Gold Company Nominees Ltd, owned by the Newmont Mining Corporation of the U.S.A., has approval to acquire two more properties in Waihi, Coromandel:
· 0.0751 hectares at 2 Roycroft Street for $121,500 from Robert John Lightfoot and Beverley Suzanne Lightfoot of Aotearoa. [Decision number 200410009.]
· 0.075 hectares at 6 Roycroft Street for $109,500 from Sharon Violet Winchcombe of Aotearoa. [Decision number 200410011.]
In December 2001, a substantial ground subsidence occurred at Barry Road in Waihi which resulted in the destruction of two properties and placed another eleven properties at risk. The subsidence was associated with historic mine workings undertaken by companies no longer existing. An agreement was reached between the Applicant, the Hauraki District Council and the Earthquake Commission to enable compensation and/or relocation for the affected property owners. As part of the agreement the affected properties were transferred to the Applicant. Subsequently, a further 25 properties were identified as being subject to a risk of ground collapse as a result of the historic mine workings. These properties are in the process of being transferred to the Applicant. The Applicant has now been approached by a number of property owners in the immediate vicinity who consider that the market value of their properties has been adversely affected. The Applicant has developed a “Property Sales Assistance Programme” under which, where it can be shown that the property’s market value has been adversely affected, the Applicant will acquire the property at market value. The property the subject of this application is part of the programme. The proposed acquisition will also consolidate the buffer between the Applicant’s mine and other surrounding residential areas.
Waihi Gold last bought a property for this purpose in November 2003. See our commentary for that month for further details of that acquisition and others.
· Donald Gordon Chandler of the U.S.A. has approval to acquire 50 hectares at Mataka Station, Purerua Peninsula, Bay of Islands, Northland for $2,200,305 (a price that was initially suppressed but released on appeal in May 2004) from Mataka Limited, owned 45.55% by WN Birnie and EC Williams, 33.33% by CS Brown, K Gosling and B Buckley, all of Aotearoa, and 21.12% by GW Dixon and IBA Group Limited of the U.K.. “The acquisition of this property by the Applicant is part of a rural lifestyle subdivision development on Mataka Station. The establishment and sale of the lifestyle lots will provide capital that will enable the farming operation of Mataka Station to become economically viable, and also to preserve and enhance the conservation and historic values of the property. [Decision number 200410001.]
· Ernest Cecil Manuel and Petronella Manuel of South Africa have approval to acquire 9.3 hectares at 217 Kawera Road, Okawa, Hastings, Hawkes Bay for $421,875 from Jonathan Samuel Morrow Buck and Megan Mary Buck of Aotearoa. “The Applicants have resided in New Zealand since November 2002 on Long Term Business Visas. They have operated a vineyard development business since January 2003. Under the terms of their Long Term Business Visas the Applicants intend to apply for New Zealand permanent residency once they are eligible to do so in January 2005. The Applicants propose to acquire the subject property to operate their business and for use as a residence. The subject property is currently farmed by the vendor with a larger adjoining block of land. The Applicants are demonstrating a commitment to New Zealand through an intention of applying for and taking up New Zealand permanent residency.” [Decision number 200410010.]
The value of investment approved in January 2004 is considerably higher than for last January, but, as is usual for January, at a low level. The net value (i.e. after taking account of sales from one overseas buyer to another, and discounting part New Zealand ownership of the assets) is similar.
Investment involving land
Gross and net sales of land approved by the OIC during the respective months have increased in area. There have been no refusals (above) so far this year, as was the case in 2003.
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